We live in a global these regions affects the U.S. China is growing at a slower pace, the eurozone is contracting, and other parts of Europe are moderating. As these economies weaken, we should see slower demand for goods and services.
trying to reduce risks and are pulling back on lending in the U.S. and emerging markets. Investment capital flow matters. We have benefited from global capital flowing to us, as investors have sought the safety of U.S. financial assets. While global economic weakness is expected to continue into 2013, the good news is that global central banks are more aligned in their actions.
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What changes do you expect to see over the next 12 months in the U.S. unemployment rate?
E C O N O M I C S ECONOMIC O U T LO O K
economy, and growth in
unemployment and an anticipated 7.8-7.9 percent unemployment rate at this time next year, which is consistent with expectations for 2 percent GDP growth. There are always regional differences, with areas overly dependent on housing seeing above-average persistence in unemployment. States like California, Nevada and Florida, which have higher unemployment rates than the national average, will likely see improvement as the housing market recovers.
We expect continued slow job creation in the U.S. during that period. In July 2012, 163,000 jobs were created. This should translate to gradual improvement in
OUTLO OK • FALL 2 0 1 2 |
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